While traders were obsessing over the lack of stock market action in the first quarter, the price of West Texas Intermediate Crude
moved over $100 a barrel. It’s a meaningful breakout for black gold
which hadn’t found a firm foothold in the triple digits since the third
quarter of last year.
Optimists would think the global
tensions in Ukraine and the absurdity that was last winter would have
trumped Summer Driving Season’s annual increase in the rise of crude.
Colorful CME trader Tres Knippa thinks crude is a raging buy at $100.
“There’s been tension in the
Middle East since the earth cooled,” Knippa observes in the attached
clip, “so I’m kind of counting on that to continue.” As for the much
vaunted glut of WTI in the U.S., Knippa sees little evidence of any such
thing exists in the pits. “The glut is simply not there and whoever’s
models are anticipating that I’d have to disagree with them.” (more)
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